Nigeria Asks Manufacturers to Reduce Cement Price to N7,000, Citing “Improved Economic Conditions”

The Federal Government of Nigeria has called on cement manufacturers to reduce prices to 7,000 N per bag, citing improved economic conditions which should justify the drop in prices.

The Minister of Works, Senator Engr. Nweze David Umahi, published this request at a meeting at the ministry Headquarters in Abuja on February 26, 2025, as indicated in an official declaration on the ministry website. Umahi insisted that with the Naira stabilizing at 1,400 n down the dollar and the drop in gasoline, cement manufacturers have no reason to maintain prices to 9,500 n per bag, an increase it was implemented when the Naira approached 2,000 nairas per dollar.

Umahi criticized the manufacturers for not having adjusted the prices of the cement despite the naira recent gains, wondering why they quickly increased prices during the currency depreciation but was slow to reverse them he rebound.

“TODAY, a dollar is around 1,400 N. And allow me to take advantage of the opportunity to express dissatisfaction with the cost of cement.

“WHe uses this support to tell the cement manufacturers that at the time the dollar was almost N2 000, they increased cement compared to N7,500. Why today, when did the president put the dollar to stability at around 1,400 N and that he still drops, cement sells for 9,500 n? We ask cement manufacturers to reduce the cost of cement to N7,000. “”

The Minister of Works stressed that affordable cement is crucial for the national development of infrastructure, particularly THE government Transition to continuous concrete roads (CRCP) for the construction of roads, which he described as more durable and profitable compared to asphalt.

He also revealed that the high cost of cement requires many entrepreneurs to reconsider the government Plan to go to concrete roads, some prefer asphalt because of its relatively lower initial costs.

If this trend continues, it could derail the federal government Infrastructure strategy, which prioritizes concrete roads for their sustainability and long -term profitability.

Manufacturers and consumers dispute Government Complaints

However, this assertion sparked a debate and skepticism as both Cement producers and consumers argue that the economic improvements claimed are not reflected in real market conditions.

Industry leaders in the cement sector note that the production cost remains high, even with the naira Partial recovery. They cite the increase in energy costs, particularly The price of diesel and gas, which remain considerably high.

In addition, they highlight:

• High persistent transport costs due to bad infrastructure.
• Increase in the costs of raw materials, many of which are always subject to fluctuations in import prices.
• High interest rate on loans used to finance cement production.

Manufacturers insist that until these fundamental cost pressures facilitate ease, cement prices cannot be considerably reduced.

Consumers Perspective

On the consumer side, ordinary Nigerians say that the supposed economic improvements that the praising government does not translate in low Costs of life. While government reports indicate that inflation slows down and GDP increases, these figures are not yet reflected in the prices of essential goods and services.

Umahi Ultimatum: the price must drop in a week

The minister published a one -week ultimatum so that cement manufacturers reduce their prices, warning this failure to do this Would force him to degenerate the case to President Bola Tinubu for an additional action.

However, this is not the first time that a government official under Tinubu The administration criticized cement manufacturers for price increases.

In February 2024, Musa Dangiwa, Minister of Housing and Urban Development, condemned the excessive increase in cement prices, accusing manufacturers of using exchange fluctuations as an excuse To inflate the costs and aggravate Nigeria economic crisis.

Dangiwa pointed out that the cement prices have gone from 5,500 N to more than 10,000 N per bag, an increase of more than 100% of just month. He urged manufacturers to seek innovative solutions instead of Get all costs to consumers.

He also warned that the increase in cement prices was a serious threat to THE government Housing projects, in particular for low -income employees and vulnerable Nigerians.

While government agencies continue to publish data suggesting an economic recovery, the striking reality remains that essential products, including cement, food and transport, have not seen any significant price reduction. This contradiction has led many Nigerians to question the accuracy of official economic relationships and if the “”improved conditions“” quoted by the government Really exist.